eFarm

Enabling FArmers to Reach Markets

An Agri Supply Chain Platform Linking farmers and consumers

Why is there
an Agri Crisis
in India ?
Key problems and simple solutions

Venkata Subramanian , Founder & COO

Srivalli Krishnan , Co-Founder & CEO
 Only a crystal clear question yields a
transparent answer
– Zen saying

PROBLEM STATEMENT
 Pain areas | The Agri Supply Chain
Current State : Too Many Steps , Too Little Value Addition

Harvesting of • Unorganized , unregulated , Terminal markets to

Vegetables
unprofessional & unprofitable neighborhood wholesalers

•A Middlemen’ dominated market

1 •Adhoc /Arbitrary Decisions on quality &
price
5

Regional mandi to Wholesalers to Retailers

4 Terminal markets near
A local mandi large cities
auctioning 2

Local to Regional mandis

for Auction
6
Loss in transit
40%
Price hike Retailers to Dining Table

3 End to end
> 400%
7
Pain areas | The Farmer’s ‘REAL’ crisis

Reality Check
•Farmers cannot do “everything”.
They need professional help and
organizational support

•Farming needs to become self

sustaining and HENCE a business
activity
•High uncertainty and risks = Very
low investor interest
•Years of neglect & low esteem =
educated youth avoid an agri
career

Need role models and pioneers to

build the road to recovery
Lack of Data| No visibility to supply or demand

Reality Check
• No accurate , dynamic data
on supply
• No market research on
customer demand
• No data = Wild guesses ?
 Pain Areas | Customer Spectrum
Huge domestic demand, Escalating prices & Unmet needs
Organised retailers are crowded in this space
Competition high

Low Income Middle High Hotels & Food & Export

Group Income Income caterers Drink • ~1% of
• > 40% in Group Group • ~25% of processors volume
volume • ~ 20% in • ~5% in volume volume • ~5% of • Best quality /
• Buy from volume • Buy from volume specific
• Buy from products only
neighborhood • Buy from retail chains wholesale • Product
markets street vendors • Quality & mandi specific buyer
(evening) • Price + Quality variety • Large volume
• Pay more for conscious conscious + fixed price
less quality range

Efarm targets entire B2B segment and currently untapped areas

 Pain areas | Marketing -The missing link ?

Reality Check

The missing FIFTH ‘P’ of marketing No proper

in agri context - PERISHABILITY !!
customer
Other industries have differentiated
demand data
production from marketing/sales
Agriculture – Farmer handles both roles India’s agribiz is
‘supply driven’
Brands have value !! Indian products rather than
though have wider varity and better
taste have not established a stable
‘market driven’
brand
 Pain Areas |
So many solutions , but why still a crisis ?

R&D
ICT Reality
solutions Check
Increase
yield
Lots of great
Contract
farming
ideas and
Export
market effort

But

Exist in silos
Cold
chain Modern
Blind men
Micro and the
retail &
finance &
logistics
Grants elephant ?
 Market Scenario|
Burning Crisis or Booming Oppurtunity ?
India’s Total production of fruits & vegetables =
•100 Million Tonnes = Rs 650,000 Crores (value) [ 1 tonne = 1000 kgs]
Wastage in transit/handling/distribution = 40%
Key focus
Current market segmentation of organised players: areas for
•Organised retail/Branded retailers share in F&V : 1.5% govt. for
urgent
•Food processing sector : 1% ( key pain : erratic supply)
improvem
•Export sector : 1% (key pain : poor grading, quality checks) ent
Typical DAILY requirement of fruits & vegetables of Tier 1 city/metro :
•4000 tonnes = Rs 6 crores value
Source : IMAGES F&R Research Study , Govt of India , Dept. of Agriculture, Min. of Food processing

Even a 1% improvement in this segment

would create/generate/save Rs 650 Crores !!

"We can't solve problems by using the same kind of
thinking we used when we created them."

Albert Einstein

THE SOLUTION
 Key Innovations
1) Weighing machine = standardise agri business transactions !

Bundles, baskets , bags  Kilograms , Counts 

2) Simple grading = right quality to right customer!!

Mixed grades  S / M / L (Or) excellent / OK /bad 

3) Simple technology = widest usage !!!

PCs, Websites  Mobile phones , Voice, SMS 

 Value proposition |
Unlock revenue potential across the chain
Cleaning / Packing

Quality
Inspection/ Grading
Routing
Every stakeholder is alternately a
Long haul buyer or seller of agro goods, linked
Transportation
together by a common system.
Thus :
Develop Online supply chain
Rural Produce
Collection Centres Small retailers
Local vendors Technology backbone with offline
distribution mechanisms
Farmers
Create a network of farmers,
Urban area intermediaries, logistics providers,
Distribution centre
Local
Distribution distributors and retailers
Provide common support services
like marketing , training ,
Compost/Manure
from waste
Food Processing
units
technology and agri business
consulting
Bulk buyers
(Hotels / Caterers /
Retailers)
Exports ‘Organize’ the ‘un-organized’ rural
eFarm Common Services
to urban supply chain
Planning &
Coordination
Research
Call centre /
Communication
Technology
Training &
Support Manage the network to ensure
sustainability across the chain
 Solution | The Big Picture – Connecting The Dots

Value added resellers

Sorting , Grading , Processing, Packing

Storage
Warehouses

Bulk buyers
Exporters

Farmers
Cooperatives
Collection centers

Kiranas
Self Help
Groups
Hawkers

Village ICT kiosks

Phone booths Logistics Fleet Small Independent transporters
Mobile operators operators Intra-city small tempos
 The Ideal Agri-preneur

.. Ready to
jump into
fire …

Have the
discipline of a
soldier …. .. But still ‘enjoys’
doing the
impossible !